Brexit Knowledge

The UK’s decision to leave the EU has left US businesses operating in Europe wondering what’s next. To help you make well-informed decisions about your global operations as Brexit negotiations unfold, we’ve prepared a checklist of actions to take related to HR, legal considerations, taxes and more.

Many multinationals operating in or considering expanding to the UK are concerned Brexit may make the region less attractive to employers. This post explores steps UK organizations can take to mitigate the short- and long-term effects of Brexit on their employees and their own organizations.

Digitizing VAT is the first phase of the UK’s Making Tax Digital program, designed to modernize the country's tax system. UK authorities have revised related deadlines, which call for certain businesses to keep digital records and submit VAT returns using compatible software.

Theresa May gathered her Brexit “war cabinet” last week to solidify her government’s Brexit strategy before delivering a highly-anticipated speech on Friday. This post summarizes recent UK and EU Brexit publications and gives a picture of how far the UK has come in its efforts to provide businesses with certainty about how its economy will operate after Brexit.

The UK’s Autumn Budget leaves in place the UK’s low 19 percent corporate tax while vowing to tighten tax rules and crack down on online sales. This post addresses the main points of interest for corporations.

A proposed new data protection law will strengthen information privacy rules in the UK and bring the country in line with EU law, ensuring the free flow of information between Europe and the UK post-Brexit.

In April, UK Prime Minister Theresa May called for a snap general election. Last week, her gamble failed to pay off as her Conservative Party lost their majority of Parliamentary seats. Here's how the election results could affect Brexit.

The European Court of Justice ruled last week that an EU-Singapore free trade agreement must be concluded jointly by the EU and all 28 EU member states. This post explains why experts differ on whether the ruling will meaningfully affect Brexit negotiations.

The UK’s Autumn Statement 2016 takes Brexit and many other factors into account. This post summarizes the critical points from the Statement that US multinationals should know, including the UK Chancellor's confirmation that the UK will honor its rolling schedule of corporate tax cuts.

Brexit will have a profound impact on the UK. Years before it takes effect, it’s already influencing Britain’s socioeconomic, political and business climate. Here are five important developments you need to follow if you do business in the UK or with UK-based businesses.

Donald Trump’s surprising victory over Hillary Clinton in the US presidential election means many things to many people. Here are a few brief takes on what his coming presidency might mean for US multinationals.

Brexit represents a major sociopolitical change that will affect the supply chains of countless multinationals. We recommend steps you can take now to protect your organization from Brexit’s eventualities, including examining your supply chain for direct and indirect links to the UK and reviewing your contracts to make sure they're Brexit friendly.

The Brexit referendum will likely have significant implications for the UK's value-added tax system. Here are some important considerations to help you make informed VAT-related decisions as Brexit negotiations unfold.

The coming UK referendum on whether to remain in or leave the European Union could have serious ramifications for multinationals operating in the UK. This post is the first of a three-part Radius series examining a potential Brexit and the related legal, HR and tax implications companies should be aware of.

After years of negotiation, the Trans-Pacific Partnership (TPP), a massive new trade agreement, was signed in February this year by 12 nations. If it is ratified — a big “if” — it will bring important economic benefits to member nations, which include the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru — but not China. At first glance, it may seem surprising that the world’s second-largest economy isn’t participating. But if you take a deeper look at the pact and its requirements, the reasons become clear. They also shed light on China’s ambitions and the other initiatives it is pursuing to support them, even as the future of the TPP itself becomes increasingly cloudy.

In any tax system, a high level of certainty is required for both ease of tax administration and the efficient collection of tax liabilities. Likewise, for companies and their stakeholders, domestic and international tax-related certainty is a fundamental goal. The UK’s EU referendum and potential exit from the European Union represent serious threats to this desired stability. And the biggest challenge businesses will face from a potential “Brexit” will be negotiating the resulting uncertainty.

Transferring EU personal data across borders is a complicated and sensitive issue. Last year’s ruling on the invalidity of the EU-US Safe Harbor scheme, and the subsequent negotiations culminating in the EU-US Privacy Shield, are testament to this. US and EU lawmakers had to scramble to agree on the terms of the Privacy Shield, which will operate as a voluntary scheme for US data importers and which some EU privacy activists may yet challenge. When the UK exits the EU, it does not want to endure the tortuous, years-long journey taken by the US in developing the Privacy Shield. But the fact is that upon Brexit, the flow of EU personal data to the UK will no longer be lawful unless the UK is assessed as having an adequate level of data protection by the European Commission (EC). And to date, the EC has only assessed 11 countries as having adequate data privacy legislation.

So the burning question in this area is: Would the UK’s data protection regime receive an adequacy endorsement from the European Commission?

The debate on the possible effects of the UK leaving the European Union is in full flow. Those in favor of and those against a “Brexit” are posting statistics to bolster their respective arguments. In truth, leaving the European Union would be unchartered territory for this island nation, and indeed, for those countries remaining in the EU. There are regional implications beyond one country that are difficult to predict. That said, HR professionals should be considering the following areas, which could be affected by the UK’s defection from the EU: Long-Term Planning, Immigration and Employment Law.

Yesterday UK voters decided to leave the European Union. The decision will have serious implications for multinationals operating in the UK. It’s important to keep in mind, however, that any changes resulting from yesterday’s referendum are months away. Now is the time to take a measured approach to how your business will likely operate in a UK that is not part of the EU, basing your strategy on the probable consequences of yesterday’s vote.

The UK electorate has spoken, and after a transition period Britain will leave the European Union. Politicians on both sides of the channel must now not only start to develop new policies, they must also set a reasonable tone amidst Brexit-related passions. UK and EU business leaders must similarly manage change in their respective organizations during this uncertain period.

The British pound has slipped considerably since June’s Brexit referendum, and recent hints that the UK may make a "hard Brexit" have stoked investor fears. We provide a summary of why the pound has fallen and outline some of the pros and cons of a weak pound.

In this week's German-themed Global Glance we look at how German authorities fined companies for sending data to the US; why China’s investments in Germany trouble many in the EU; and a fascinating cultural observation from German-born US soccer coach Jurgen Klinsmann.

News Coverage

If British voters choose the “leave” option in next week’s referendum on the United Kingdom’s participation in the European Union, the so-called “Brexit” could pose challenges for multinationals that operate in the U.K.

U.K. residents are voting in a referendum Thursday to decide whether the country should end its EU membership, a possibility known colloquially as "Brexit." Polls taken ahead of the vote have been incredibly close. A vote to leave the political bloc would have significant effects on the U.K. and European economies, and to a lesser extent, American businesses. That includes those in Massachusetts.

"Financial services might move outside the UK into other hubs in Europe," said Katie Davies, a senior director at management consulting firm Radius. Paris or Munich might replace London as centers of finance.

The Brexit, once almost unthinkable, is here. From personnel to taxes to currency allocations, multinationals are scrambling to realign their corporate policies to the new reality of a post-European Union Britain. The turmoil spells opportunity. “There will be a whole heap of work related to policy and treaties that need to be rehashed,” says Katie Davies, senior director in the advisory group at consulting firm Radius.

The vote for Britain to leave the EU sent shockwaves through global markets and the value of the pound fell to a 31-year low against the dollar this week. But Katie Davies, senior director of advisory services at global growth expert Radius, said that American companies should avoid “knee-jerk reactions” to the ongoing uncertainty.

Britain's vote to leave the European Union is already taking a toll on some small U.S. businesses, with canceled tour bookings in New York and U.K. retailers cutting back their orders from American suppliers.

CEO Stephen Chipman and his teams at Boston-based Radius, have helped a lot of US companies set up European headquarters in the United Kingdom, especially in London, and their clients are understandably concerned about what to do following the country's vote to leave the European common market.